Telangana govt clears ₹1,032 cr in pending bills

In a major financial relief, the Telangana government has cleared long-pending bills worth ₹1,032 crore, benefitting employees and departments such as Panchayat Raj and Roads & Buildings (R&B).

As per the directions of Deputy Chief Minister Mallu Bhatti Vikramarka, the Finance Department released the funds in one go, ensuring that bills below ₹10 lakh are completely cleared.

₹712 crore for employee dues

Out of the total amount, ₹712 crore has been allocated for settling pending employee dues. The remaining ₹320 crore has been released to clear bills from the Panchayat Raj and R&B departments.

The R&B Department received ₹95 crore, which will cover 3,610 pending bills, each below ₹10 lakh. Similarly, the Panchayat Raj and Rural Local Bodies received ₹225 crore, enabling the clearance of 43,364 bills.

Priority to small contractors and rural projects

The government has decided to give priority to bills under ₹10 lakh, which mostly belong to small contractors handling rural development works such as road repairs, tank restoration, and basic infrastructure projects. By clearing these payments, the state aims to speed up rural development and resume stalled projects.

Strengthening the financial system

Speaking on the occasion, Deputy CM Bhatti Vikramarka said the move is part of the government’s effort to revive the state’s financial system and ensure timely payments. “We are committed to preventing any disruption to development works and making sure small contractors receive payments without delay,” he said.

Senior officials, including Finance Principal Secretary Sandeep Kumar Sultania, attended the review meeting where the decision was finalized.

Pending bills since April 2024

Bills under the Panchayat Raj and R&B departments have been pending since April 2024, the start of the current financial year. Due to monsoon disruptions, heavy rains, and delays in fund release, small and medium contractors had been waiting for payments for more than three months.

What about bills above ₹10 lakh?

For now, only bills below ₹10 lakh are being cleared. Larger bills remain pending. According to Finance Department sources, the state treasury will take up the clearance of higher-value bills in a phased manner once smaller payments are completed.

The process for larger bills is expected to begin around mid-November to early December, with full payments likely to be completed by January 2026.